NJ High Court Upholds Co-Insurer's Claim For Defense Costs

Law360, New York (September 16, 2013, 8:30 PM EDT) -- The New Jersey Supreme Court ruled Monday that an insurer bound to indemnify and defend an insured over continuous property damage litigation can bring a direct claim for defense costs against a co-insurer, which can't dodge such demands through a settlement between itself and the insured.

The court unanimously backed OneBeacon Insurance Co.'s contribution claim against Pennsylvania Manufacturers Association Insurance Co., which hoped to overturn trial and appellate decisions requiring it to provide $84,000 in defense costs that OneBeacon shouldered on behalf of common insured Roland...
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